RMB internationalisation (RMBI) is entering a ‘2.0 window’

Jean Lu, CEO China on RMBI, Panda-Dim Sum bonds and how China’s opening-up is reshaping global finance.

10 February 2026

6 mins

This article draws on insights shared by Jean Lu, CEO, China and Vice Chair of Standard Chartered Bank (China), in an interview originally shared on Shanghai Securities News.

As China enters 2026 and begins implementing its 15th Five-Year Plan, the country’s financial opening-up is moving into a deeper, more institutionalised phase. Rather than merely expanding access, reforms are increasingly focused on strengthening the infrastructure that underpins cross-border capital flows, financial-regulations and market efficiency. This reinforces certainty and predictability for global corporates and investors engaging with China.

Entering 2026, a comprehensive set of policy tools is continuing to take effect. This is enabling greater certainty and clarity in China’s economic outlook as institutional opening-up advances.

Jean Lu

CEO, China , Standard Chartered

Against this backdrop, the renminbi (RMB) internationalisation is entering what Jean Lu describes as a ‘2.0 window’ – a new phase characterised not only by broader usage, but by the RMB’s growing role as a functional international currency.

From trade settlement to full financial functionality

Jean Lu highlighted that RMB internationalisation is no longer defined solely by its use in trade settlement. Increasingly, the RMB has been evolving into a currency that global market participants can use, hedge, invest and finance with.

“The RMB has been moving from a settlement currency towards one with more comprehensive financial functionality – including hedging, investment and financing,” she said. “This will significantly enhance its international standing and provide the global monetary system with a more diverse and stable option.”

For global corporates and financial institutions, this means the RMB is becoming:

• Usable across trade, treasury and liquidity management, making it a practical choice for managing global cash flows.
• Hedgeable, supported by both onshore and offshore risk-management markets, allowing businesses and investors to manage currency exposure more effectively.
• Investable, with the development of deeper RMB-denominated asset pools, offering new opportunities for portfolio diversification.
• Financeable, across onshore and offshore funding channels, enabling companies to access capital in RMB for operations, projects and growth.

Panda bonds and Dim Sum bonds: twin pillars of RMB internationalisation

A key pillar of RMB internationalisation is the steady development of Panda bonds and Dim Sum bonds, which together are forming  a robust, two-way RMB financing ecosystem.

At the start of 2026, the Panda bond market recorded a strong debut. On 7 January 2026, Standard Chartered supported Henkel in successfully issuing a RMB1.5 billion, three-year Panda bond in China’s interbank bond market. This marked not only Henkel’s inaugural Panda bond issuance but also the first foreign-issuer Panda bond of 2026, setting a positive and encouraging tone for the year ahead.

“With continued optimisation of the Panda bond policy environment, RMB funding costs remain competitive, investor participation is becoming increasingly diversified, and market liquidity continues to improve,” Jean Lu said. “This further enhances the appeal of Panda bonds for offshore issuers.”

Since the launch of the first Panda bond in 2005, the market has transitioned into  a phase of institutionalised, normalised and high-quality development. In 2025, total Panda bond issuance registered with National Association of Financial Market Institutional Investors (NAFMII) reached RMB163.31 billion, representing year-on-year growth of 15.6 per cent.

Complementing this growth, Dim Sum bonds offshore RMB-denominated bonds that began developing in 2007, have also seen steady expansion. Over the years, issuance volumes, issuer diversity and product structures have continued to evolve, with Dim Sum bonds transitioning from a niche product into a mainstream financing channel.

Jean Lu highlighted the complementary roles of these instruments in supporting the broader RMB Internationalistion agenda. Dim Sum bonds facilitate outbound RMB financing, empowering Chinese companies to fund their overseas expansion, while Panda bonds enable foreign issuers to access China’s deep onshore RMB capital pool, either for domestic use or for offshore deployment.

Onshore–offshore integration strengthens RMB assets

By integrating onshore and offshore markets, RMB-denominated asset pools continue to deepen. “This improves market efficiency, reduces volatility, and makes RMB assets more attractive to global investors,” Jean Lu said.

Against a backdrop of significant shifts in the international monetary system and  escalating geopolitical uncertainty, the Panda bond–Dim Sum bond ecosystem  offers a compelling alternative to USD-centric funding models. As two-way cross-border RMB flow mechanisms continue to refine, the RMB is increasingly becoming a trusted, usable and investable currency.

Standard Chartered as a global partner for clients

With nearly 170 years of history in China and a global network spanning Asia, the Middle East, Africa and Europe, Standard Chartered has played a pivotal role in supporting the RMB internationalisation.

By connecting onshore and offshore RMB markets, and combining deep local expertise in China with global structuring, distribution and risk-management capabilities, we support clients across the full RMB lifecycle: from trade and liquidity management to bond issuance, investment, financing and hedging.

Jean Lu described this role as that of a “super connector”, bridging China’s financial system with global markets and helping clients translate policy evolution into practical, tailored financial solutions.

Institutional opening-up and the road ahead

Jean Lu believes 2026 will mark a step change in China’s institutional financial opening-up. “Opening-up is not just about opening doors,” she said. “It is about building better roads – systematically improving the mechanisms that support cross-border capital flows.”

In December 2025, the People’s Bank of China Shanghai Head Office issued the Implementation Measures for the Upgraded Functions of Free Trade Account in Shanghai Free Trade Zone (Trial), which formally came into effect. As one of the first pilot banks, Standard Chartered China simultaneously introduced the product solution of “FT 2.0 Account”, supporting the immediate rollout of enhanced cross-border functionality.

Shanghai’s 15th Five-Year Plan proposals, released on 19 January, emphasize the city’s strategic role in advancing the internationalisation of the RMB.  A key focus is accelerating the development of global centres for RMB asset allocation and risk management, reinforcing Shanghai’s position as a critical bridge between China’s onshore and offshore markets.

Looking ahead, Jean Lu believes the RMB internationalisation will continue to evolve across multiple dimensions during the 15th Five-Year Plan period – from expanded usage scenarios, more complete financial functions, and a more mature offshore ecosystem – shaping a new chapter for the RMB in the global financial system.